PMI Predicts Law Firms Continue Struggling in 2012
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

The Peer Monitor Index of the Hildebrandt Institute that monitors law firms’ earnings and finances grew modestly in Q1 of 2012 after two sharp drops at the end of 2011. According to the data, while growth is on the cards, the year will see a greater number of efforts hamstrung by rising expenses and operative costs.

Demand for law firms, including AmLaw firms experienced a 1.5 percent growth over the same period of last year. However direct expenses of firms rose by six percent and overhead expenses grew by 3.6 percent. The rise in expenses is still insufficient to celebrate the 2 percent growth in demand witnessed by the AmLaw 200.

The Peer Monitor keeps track of quarter-over-quarter changes in factors that influence the profitability of law firms, including expenses, productivity, demand, and billing rates.


Peer Monitor head Mark Medice said that the rise in expenses can be partly attributed to the facts that it is not possible for most firms to defer certain payments and expenses like technological upgrades, even though recovery is slow and coffers far from full.

The practice areas that seem to be booming already in the first quarter, compared to last year include Labor& Employment, which witnessed a growth of five percent, and capital-markets related work, which experienced a growth of six percent. Intellectual property practice is also on the rise, but general corporate work dropped by six percent. Both traditional litigation and real estate practices are also suffering.

The highest growth area for the AmLaw 100 firms was in patent related intellectual property work and capital markets. However, the same firms are witnessing close to five percent decrease in general corporate work, bankruptcy, structured finance, and real estate.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!

The report due in June is expected to provide a clearer picture of the situation. Medice said, “The first half of the year will often set the tone for where things are going to go. Q2 will be really important to indicate what kind of year we’re going to have.”


Interesting Legal Sites You May Like




Search Now

Employment Litigation Attorney with 5+ years of experience

USA-CA-Los Angeles

Los Angeles office is seeking a labor and employment litigation attorney with 5+ years of experience...

Apply Now

Attorney with 7-10 years of business litigation experience

USA-CA-Century City

Small to mid-size Century City law firm is seeking an attorney with 7 - 10 years of business litigat...

Apply Now

Capital Markets Staff Attorney with 6+ years of experience

USA-NY-New York City

New York City office is seeking a capital markets staff attorney with 6+ years of experience. Candid...

Apply Now

IP Patent Prosecution Agent with 2-4 years of physics experience


Milwaukee office of our client seeks IP patent prosecution agent with 2-4 years of experience. The c...

Apply Now


Of Counsel Attorney with Experience In Employment Law


Busy Aventura litigation law firm with concentration in federal employment law seeks an “of co...

Apply now

Administrative Assistant / Paralegal


Growing law firm with practice areas in immigration, family law, criminal defense seeks legal a...

Apply now

Personal Injury Attorney


We are a small, but busy boutique litigation practice in Long Island with an emphasis in plaintiff\'...

Apply now

Lawyer - Personal Injury / Commercial Litigation


We are a small, but busy boutique litigation practice in Long Island with an emphasis in plaintiff\'...

Apply now

Most Popular


To Top